In today’s increasingly competitive business environment, it is imperative that organizations focus on attracting and retaining top talent. Josh Bersin from Deloitte points out that the cost of losing an employee can reach two times that employee’s annual salary. Beyond cost, the loss of talent can impact the larger team in terms of morale, productivity and motivation. So how do savvy organizations excel in their employee retention strategies?
1. Hire the Right Candidates
Go beyond the resume to understanding what motivates candidates, what their levels of resilience are, and how effectively they manage challenges. Leadership guru Dave Ramsey talks about the interview process, in which his company requires anywhere from 10 to 17 interviews! Go deeper than just previous employment and what books they like to read – find out what makes them tick. If possible, have the candidate complete a task similar to what they’d be doing on the job. This allows both you and the candidate to find out if it’s truly something they enjoy. Find out what they have done to go above and beyond in their professional and personal lives that demonstrates passion and self-motivation.
2. Share Your Vision
Modern employees – particularly the millennial generation – want to find meaning in their work. Research by Josh Bersin illustrates that “mission-driven” companies yield 40 percent higher levels of retention while reaching the top levels of their market segment. Ensure that your vision is living and breathing, not just a line in an employee manual. Publish your core values and live by them! Help employees understand exactly how their individual roles directly contribute to the vision and how your company is providing solutions to real-world problems.
3. Encourage Innovation
An organization that neglects to cultivate a culture of innovation will soon become stagnant and begin losing talent to more progressive companies. Author Alan Robinson asserts that soliciting and implementing employee suggestions leads to increased engagement. And why wouldn’t it? Everyone wants to be heard and feel vested in the success of the business. Set up a formal process that solicits, reviews and then implements appropriate innovative ideas drives the business forward and provides employees the opportunity to become invested in the company’s progress. Beyond that, invest in training for employees to keep their skills and knowledge top-noch. Train leaders to innovate and you’ll find that filters throughout the organization.
4. Have the Right Conversations
Modern employees want connection. Author Mark Murphy recommends scheduling periodic meetings with every employee to understand their motivations and pain points. Probe and ask the right questions to understand their strengths and their long-term goals, and share how you can help them achieve these goals.
5. Offer Robust Benefits
According to the Society for Human Resource Management, the most frequently used benefits to retain high-performing employees are health care, professional and career development benefits, and flexible working benefits. A great strategy is to simply ask employees what benefits or perks are important to them, and then accommodate as appropriate.
As millennials continue to replace baby boomers in the modern workforce, it will become increasingly important to modify retention strategies for the next generation. To learn more about how to connect with employees to improve retention rates, or for information on how we can help your organization, please contact us.